Going Green: Not a Luxury Anymore
The climate for sustainable businesses has changed. Making your business environmentally friendly used to require the kind of sacrifices that only the most committed activists would make. But for luxury brands today, being "green" is increasingly part of the cost of doing business. In times of economic pressure, every purchase is carefully considered. Consumers want to express their values in choosing what to buy and where to buy it.
Research shows that environmental issues are increasingly important to consumers today. A recent Natural Marketing Institute study found that 80 percent of Americans are involved in "green" activities like recycling and conservation. One third of the public is willing to pay 20 percent more for products that are made in an environmentally friendly and sustainable way. A company's attitude toward the environment is important to employees, too. In the recent American Workplace Poll conducted by Zogby International, 78 percent of U.S. workers said it was important for them to have an employer that is "going green."
Businesses that make an environmental commitment also benefit in many ways. Going "green" can improve efficiency, enhance your bottom line, differentiate your brand, bolster marketing efforts, and boost your reputation. Because not all your competitors have taken this step, your commitment can create a competitive advantage for your business.
Recently, Wal-Mart, the country's largest jewelry retailer, announced a new brand of jewelry called "Love, Earth" sourced from American gold and silver mines that will be traceable through a transparent supply pipeline. Consumers can learn about the mine that produced the gold or silver in each ring, necklace, and bracelet and reassure themselves that they are not contributing to environmental damage through their jewelry purchases. Wal-Mart, like luxury leader Tiffany & Co, also uses solar power and has made a commitment to reducing waste and energy use in its stores and in its supply chain. Do you really think the world's largest retailer would be investing in reducing its environmental impact if it wasn't also good for business?
It doesn't require much effort to take the first steps. Invest in LED lights for your cases and compact fluorescents for work areas. Try non-toxic citric acid and non-cadmium solders in your shop. Switch to reusable packaging and recycled paper products. Reduce energy use, water use, and waste wherever you can. Consider solar or wind power and carbon offsets. Ask your suppliers to tell you about the environmental impact of all the products you carry so you can start making better decisions. That will also encourage your suppliers to take steps to reduce their own footprints, magnifying your own efforts throughout your supply chain.
The companies that have been particularly successful in their environmental efforts are those with tangible "green" products consumers can understand. Many environmentally committed jewelers and designers offer jewelry made with recycled metals, which are now widely available from leading suppliers. Even if you don't carry a special product line, make sure that you share all the positive things you've learned from your suppliers about their efforts to improve the environment. Communicating the "green" features of your products can help differentiate you from the competition, but most consumers will also weigh other factors. If your product doesn't also compete on price, quality and style too, "green" won't be enough.
As you take these steps to reduce the environmental impact of your business, be as transparent as you can. Even if you're not achieving as much as you'd like, consumers appreciate honesty. Most consumers don't know how carefully bench jewelers capture and recycle metals, so you may have more of a story to tell than you realize. Modestly stating your successes and highlighting areas to improve will help involve your customers and deepen your relationship. Your customers can also help guide your efforts toward sustainability if you invite their input and feedback. Consumers need to know what you're doing so they can get involved by making informed decisions and rewarding values that match their own.
